Professional Documents
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COST ACCOUNTING
Not traceable to jobs:
FINAL EXAMINATION Factory materials and supplies 46,000
Indirect labor 235,000
1. The appropriate method for the disposition of Plant maintenance 73,000
underapplied or overapplied factory overhead. Depreciation of factory equipment 29,000
A. is to cost of goods sold only. Other factory cost 76,000 459,000
B. is to finished goods inventory only.
C. is apportioned to cost of goods sold and finished Pane's profit plan for the year included budgeted direct
goods inventory. labor of P320,000 and factory overhead of P448,000.
D. depends on the significance of the amount. Assuming no work-in-process on December 31, Pane's
overhead for the year was
2. During the current accounting period, a manufacturing A. P11,000 overapplied
company purchased P70,000 of raw materials, of which B. 24,000 overapplied
P50,000 of direct materials and P5,000 of indirect C. 11,000 underapplied
materials were used in production. The company also D. 24,000 underapplied
incurred P45,000 of total labor costs and P20,000 of other
factory overhead costs. An analysis of the work-in-process 5. Avery Co. uses a predetermined factory overhead rate
control account revealed P40,000 of direct labor costs. based on direct labor hours. For the month of October,
Based upon the above information, what is the total Avery's budgeted overhead was P300,000 based on a
amount accumulated in the factory overhead control budgeted volume of 100,000 direct labor hours. Actual
account? overhead amounted to P325,000 with actual direct labor
A. 25,000 hours totaling 110,000. How much was the overapplied or
B. 30,000 underapplied overhead?
C. 45,000 A. P30,000 overapplied
D. 50,000 B. 30,000 underapplied
C. P5,000 overapplied
3. A company allocates overhead to jobs in process using D. 5,000 underapplied
direct labor costs, raw material costs, and machine hours.
The overhead application rates for the current year are: 6. Harper Co.'s Job 501 for the manufacture of 2,200 coats,
which was completed during August at the unit costs
100% of direct labor presented below. Final inspection of Job 501 disclosed 200
20% of raw materials spoiled coats which were sold to a jobber for P6,000.
P117 per machine hour
Direct materials P20
A particular production run incurred the following costs: Direct labor 18
Factory overhead (includes an allowance of P1
Direct labor, P8,000 for spoiled work) 18
Raw materials, P2,000 P56
A total of 140 machine hours were required for the
production run 7. Using the same information in No. 54, assume instead that
the spoilage loss is attributable to the exacting
What is the total cost that would be charged to the specifications of Job 501 and is charged to this specific job.
production run? What would be the unit cost of the good coats produced in
A. 18,000 Job 501?
B. 18,400 A. P55.00
C. 34,780 B. P57.50
D. None of the answers is correct C. P58.60
D. 61.60
4. Pane Company uses a job costing system and applies
overhead to products on the basis of direct labor cost. Job 8. Under Heller Company's job order cost system, estimated
No. 75, the only job in process on January 1, had the costs of defective work (considered normal in the
following costs assigned as of that date: direct materials, manufacturing process) are included in the predetermined
P40,000; direct labor, P80,000; and factory overhead, factory overhead rate. During March, Job No. 210 for
P120,000. The following selected costs were incurred 2,000 hand saws was completed at the following costs per
during the year. unit:
11. Department A is the first stage of Mann Company's Using the weighted average method, what were the
production cycle. The following information is available for equivalent units for the month of April?
conversion costs for the month of April 2011:
Transferred-in Materials cost Conversion
Units Cost cost
Work in process, beginning (60% A. 15,000 15,000 15,000
complete) 20,000 B. 19,000 19,000 20,000
C. 20,000 20,000 18,000 operations of the Cutting Department for the month of
D. 25,000 25,000 20,000 August show:
14. Using the same information in No. 27, and using the Beginning Added this
weighted average method, what was the cost per inventory Period
equivalent unit for conversion costs? Costs charged to the department:
A. P4,200/15,000 Materials P4,120 P44,880
B. P5,800/18,000 Direct labor 522 12,638
C. P5,800/20,000 Factory overhead 961 18,779
D. P5,000/18,000
During the month, 9,200 units were transferred from the
15. The Wilson Company manufactures the famous ticktock Cutting Department to the Fitting Department. The Cutting
watch on an assembly line basis. January 1, work-in- Department had 1,000 units still in process at the end of
process consisted of 5,000 partially compleed. During the July (100% complete as to materials and 40% complete as
month an additional 110,000 units were started and to conversion costs) and 800 units still in process at the
105,000 units were completed, the ending work-in-process end of August (75% complete as to materials and 25%
was 315 complete as to conversion costs. Conversion costs complete as to conversion costs, what is the average cost
are added evenly throughout the process. The following per equivalent unit in the Cutting Department?
conversion costs were incurred. A. P6.40
B. P9.50
Beginning costs for work-in-process. P1,500 C. P7.40
Total current conversion costs 273,920 D. P8.50
The conversion costs assigned to ending work-in-process 18. The following production information for Dept. B of Zenith
totaled P15,360 using the FIFO method of process costing. Products is for the month of May, 2011:
What was the percentage of completion, as to conversion
costs on the 5,000 units in BWIP? Received from Dept. A 600,000 units
A. 20% Completed and transferred to Dept. C 500,000 units
B. 40%
C. 60% Additional information:
D. 80% a. No beginning work in process.
b. Ending work in process is 75% complete.
16. Barnet Company adds materials at the beginning of the c. May's production costs total P2,760,000.
process in Department M. Conversion costs were 75%
complete as to the 8,000 units in WIP at May 1 and 50% Dept. B's unit cost of production for May, 2011 is:
complete as to the 6,000 units in WIP at May 31. During A. P4.60
May, 12,000 units were completed and transferred to the B. P4.80
next department. An analysis of the costs relating to WIP C. P5.02
at May 1 and to production activity for May is as follows: D. P5.52
For the month of May, what was Rex's direct materials -END-
price variance?
A. P2,800 favorable
B. 2,800 unfavorable
C. P6,000 unfavorable
D. 6,000 favorable
A. P500 unfavorable